When launching an online business, one of the first questions that can be perplexing is: who owns your domain name? The question isn't just about the registration process but about the actual ownership of the domain name. It's a source of confusion that many startups wrestle with, but understanding its importance is vital. I know this is rudimentary information, but most owners need to learn and end up in situations that can lead to confusion and losing a domain name.
What is a domain?
It's important to distinguish between a domain name and a hosting server, DNS. A domain name is a unique and branded web address that identifies and provides access to a specific website on the Internet. On the other hand, a hosting server, DNS, is a service that stores the data of your website and makes it accessible to users. In the past, the .com domain was popular, and it was common to buy as many as possible for resale due to the lower cost compared to today.
Other options include .net, .co, .org, .tv, .info, .io, and more. However, we recommend using the .com domain extension, as it is the most familiar to people.
You can use https://www.whois.com/ to check if a domain is available and even submit a bid to a broker for a name that is not accessible. If you fail to renew a domain, you can quickly lose it to a broker, especially with .com domain addresses. It takes work to retrieve a domain once a broker buys it. Broker fees for a domain have been high, and you must pay a significant amount to acquire the domain you want.
Domain brokers, much like real estate agents, play a significant role in the domain name market. They act as intermediaries between the buyer and seller of a domain name and typically charge a commission fee on each deal. These fees can range from 10% to 20% of the sale price and are paid by either the buyer or the seller. Some brokers may also charge an upfront fee. Either way, their involvement underscores the importance of renewing your domains to avoid potential loss.
Now, let's renew the hosting server, aka DNS. Your hosting server is where you house your website files and the location of your content. It is a separate cost, and depending on whether your developer is designing in WordPress, Wix, Squarespace, or other website template formats, this is where you will update and point your customers to when your site goes live. Once the website is designed and ready to launch, the developer will redirect the "domain" for future website inquiries, and the cost of hosting servers depends on the chosen platforms.
Would a web developer handle the purchase of my domain name?
However, it gets tricky to determine whose name goes on the domain and who owns it. Over the years, I have seen just about every problem that has caused issues for a business owner. You should always control your domain name, and letting someone you just hired purchase your domain can be risky. A good developer will walk you through the process and recommend where to register the domain, depending on what platform or service you will be using. If you want to design a WordPress site, you can choose GoDaddy as your hosting company. Then, you can register your domain and emails through this company—that way, you know where everything is under one account for updates and maintenance.
Let's say you decide to use WIX as your design platform. You can still register your domain, hosting, and email within this program. A big mistake many business owners make is letting somebody else take care of it or registering things on their behalf and controlling the DNS. The problem is ownership should always belong to the business owner. And you are delegating access to the developer. If you decide to go your separate ways, you will have ownership and access to the domain. I've seen that most clients don't know how to access their accounts, including their domain. Or forget to pay for the renewal and lose the domains to a broker, creating chaos and panic. And nowadays, it's challenging to transfer accounts and domains, and if that developer goes out of business, well, you are sh** out of luck. And that, my friends, leads to the starting all over for your online business.
Think of your domain as a real estate title – a way to prove ownership of a physical asset.
Rule to Remember For Domains
Always remember to keep your login details safe. One of my favorite password protectors is "LastPass," not my phone notes or spreadsheets. It is your responsibility to protect your website and its contents. Never give your login details to anyone you don't explicitly trust.
Today, recovering domain names can be complicated if they are transferred from one account to another or the associated email address changes. Here is your tip: know the location of your domain or who controls it; it's important to get organized because ignoring the issue is no longer an option.
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